Mauritius’ FPI Share Drops to 6% in March 2024, US and Singapore Lead Foreign Investments

In March 2024, Mauritius’ share in total foreign portfolio investors (FPI) assets dwindled to 6%, marking a significant decline from its previous prominence as a preferred jurisdiction for investments in India. Data sourced from the National Securities Depository Limited (NSDL) revealed that Mauritius, which once held the top spot with a 27.5% contribution to total assets under custody (AUC) in 2012, has now slipped to the fourth position.

Foreign investments from Mauritius, encompassing both equity and debt, amounted to ₹4.2 lakh crore, representing 6% of the total FPI assets in March 2024. This ratio has been on a downward trajectory over the past decade, starting from 21.4% in March 2014, and eventually dipping to a single-digit figure in 2022, according to NSDL data.

Contrastingly, investments from the United States accounted for 39.2% of the total foreign assets, showcasing its dominant position in the FPI landscape. Additionally, Singapore emerged as a significant contributor, holding close to 10% of the total foreign assets by the end of March 2024.

The shift in FPI dynamics highlights a changing landscape in investment preferences, with Mauritius witnessing a decline in favorability due to various factors. While the island country once benefited from tax incentives, changes in tax treaties, increased regulatory scrutiny, and amendments to agreements have contributed to its diminishing appeal as a top source of FPI investments.

As the US and Singapore lead the pack in foreign investments, the data underscores the evolving nature of global investment patterns and the importance of adaptability in navigating the dynamic financial markets.

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